Moneycontrol
Last Updated : Jan 17, 2018 12:16 PM IST | Source: CNBC-TV18

Hindustan Unilever Q3 profit seen up 11%, volume growth may be around 8-9%

Analysts expect volume growth at around 8-9 percent on the back of soft base of negative 4 percent; recovery in wholesale trade channel & CSD; Pan India expansion of Aayush brand and Indulekha; and price reduction post GST.

FMCG major Hindustan Unilever is expected to announce a great set of results today due to demonetisation base, GST restocking, nation-wide launch of Ayush and international parent's cost cutting focus.

Profit after tax is seen rising 11.4 percent year-on-year to Rs 1,156 crore while adjusted profit may rise 25.7 percent, according to average of estimates of analysts polled by CNBC-TV18.

Revenue during the quarter is expected to increase 9.8 percent to Rs 9,136 crore from Rs 8,318 crore.

Operating profit is seen rising 24 percent year-on-year to Rs 1,684 crore and margin may expand 210 basis points to 18.4 percent for quarter ended December 2017, driven by focus on cost reduction, increased premium products and spike in crude oil to impact with a lag.

Analysts expect volume growth at around 8-9 percent on the back of soft base of negative 4 percent; recovery in wholesale trade channel & CSD; Pan India expansion of Aayush brand and Indulekha; and price reduction post GST.

Key things to watch out for are increased advertising spends, revenue growth in home care & personal care space, revenue improvement in foods, some inflationary pressure in input costs, and price cuts post GST rate cuts.

The stok price hit a record high, rising 65 percent in the last 12 months.
First Published on Jan 17, 2018 12:16 pm
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